El Paso Electric Earnings: Here’s Why Investors Like These Results

El Paso Electric Co. (NYSE:EE) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.6%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

El Paso Electric Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 137.5% to $0.19 in the quarter versus EPS of $0.08 in the year-earlier quarter.

Revenue: Decreased 28.82% to $120 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: El Paso Electric Co. reported adjusted EPS income of $0.19 per share. By that measure, the company beat the mean analyst estimate of $0.10. It missed the average revenue estimate of $170.26 million.

Quoting Management: “We had a solid first quarter this year with earnings per share increasing $0.11 over the first quarter of 2012. Sales to retail customers increased 4.1% primarily resulting from the colder winter weather our service territory experienced this year,” said Tom Shockley, Chief Executive Officer. “From an operational perspective, we are pleased with the completion and anticipate commercial operation of Rio Grande Unit 9 in May 2013. This new 87 MW aeroderivative peaking unit will assist us in ensuring dependable low cost energy supplies for our customers.”

Key Stats (on next page)…

Revenue decreased 36.44% from $188.8 million in the previous quarter. EPS increased 58.33% from $0.12 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.72 to a profit $0.75. For the current year, the average estimate has moved up from a profit of $2.37 to a profit of $2.38 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)